01-0218R

RESOLUTION EXPRESSING THE INTENT OF THE DULUTH CITY COUNCIL TO ENTER INTO AN AGREEMENT WITH THE MINNESOTA DEPARTMENT OF TRANSPORTATION FOR THE RENTAL OF ROAD MAINTENANCE FACILITIES.

BY COUNCILOR FENA:

        WHEREAS, the deteriorated condition of the old National Guard armory is forcing city to abandon it as a road maintenance facility; and

        WHEREAS, Mn/DOT is negotiating with St. Louis County to lease space in a maintenance facility the county is planning to build at Pike Lake; and

        WHEREAS, after completion of construction, Mn/DOT will move some operations from its Duluth headquarters building to the Pike Lake facility; and

        WHEREAS, the city desires to lease the space in Mn/DOT Duluth facility that will be vacated when Mn/DOT moves some operations to the Pike Lake facility. This space will consist of approximately 17,700 square feet of truck storage and a small office space contiguous to the truck storage area and 14,000 square feet of cold storage and salt/sand storage; and

        WHEREAS, Mn/DOT desires to lease such space to city, on mutually agreeable terms; and

        WHEREAS, Mn/DOT and city will meet to discuss rental rates and other terms and conditions of the lease. Should the parties reach agreement, then the final lease terms and conditions will be contained in a lease contract to be entered into by the parties and executed by city, Mn/DOT and state officials as required by law.

        NOW, THEREFORE, BE IT RESOLVED, that the Duluth City Council hereby expresses its intent to proceed with the lease of Mn/DOT road maintenance facilities if Mn/DOT reaches an agreement with St. Louis County for the development of the county's Pike Lake facility and if the city and Mn/DOT can reach mutually acceptable terms for the lease of Mn/DOT's facility by the city.


STATEMENT OF PURPOSE:  This resolution expresses the city's intent to enter into an agreement with Mn/DOT to lease road maintenance facilities. St. Louis County is proposing to build a new road maintenance facility at Pike Lake. Mn/DOT would lease a portion of the new facility from St. Louis County and move some of its Duluth operations there. The city, in turn, would lease the space in the Duluth facility that Mn/DOT vacated. More detailed information will be submitted by memo from the public works and utilities director.